Today's Trading Plan: Relinquishing Control
Ryan Mallory | Nov 13, 2015 07:42AM ET
Technical Outlook:
- SPX had its strongest sell-off since the summer sell-off ended back in late October by dropping 1.4% yesterday.
- The 200-day moving average offered little to no support yesterday as price action sliced right through it.
- The Fibonacci retracements suggests a pullback to the 38.2% level at 2023 on SPX
- Head and shoulders pattern on 30 minute chart of SPX confirmed yesterday.
- SPDR S&P 500 (N:SPY) volume was at average levels and higher than what has been seen the last two days.
- T2108 (% of stocks trading above their 40-day moving average) dropped 17% to close at 43% and breaking out of its month long range in dramatic fashion.
- VIX spiked out of its range yesterday as well, rallying 14.4% to 18.37.
- At some point here soon, the market will be due for a dead cat bounce.
- Also lost in all the fuss yesterday was the 20-day moving average which had offered some support for SPX the previous two trading sessions.
- A rate hike is expected out of December's Fed meeting. However, I still would not be surprised if the Fed backed out of raising rates yet again. They've been doing just that for years now.
My Trades:
- Added two new long positions to the portfolio yesterday.
- Closed out Financial Select Sector SPDR (N:XLF) yesterday for a 1.2% loss.
- Closed ProShares UltraPro S&P500 (N:UPRO) yesterday at 64.35 for a 1.8% loss.
- 60% Long / 40% Cash
- Remain long: Salesforce.com Inc (N:CRM) at $79.25, FedEx Corporation (N:FDX) at $157.91, Facebook (O:FB) at $107.34, and Netflix (O:NFLX) at $110.39
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